Rice is a staple food of all Ecuadorians for three meals a day. The per capita consumption, as a revised figure, ranges 36.5 to 38 Kg. per month (lower than Peruvian consumption of 52 Kg, Colombia of 41 Kg, Brazil of 53 Kg.). However, these figures are controversial depending on which is the purpose and who handles the information.
Ecuador’s domestic rice consumption is forecasted to reach 456,000 MT of milled rice per year for the MY2004, about 38,000 MT per month (milled basis), explained by the fact of a modest recovery of purchasing power. Rice is sold traditionally in markets, weighed and bagged from 45.36 kilos sacks. However, as a result of the expansion of supermarkets chains in the main cities of Ecuador, consumption habits of marketing have started changing. It is calculated that 10 percent of rice is sold in bags of 2 kg. or 5 kg. with brand name.

Rice imports are very sensitive issue in Ecuador. The Government of Ecuador is pushing a self-sufficiency program for rice by implementing a price band system and controlling imports. A Consulting Committee on rice, consisting of producers, millers and government officials decide on the timing and quantity of rice imports. Tariffs for rice are at 20 percent for non-Andean Community nations and zero to CAN nations. The variable levy is currently at zero.

Ecuador exported about 60,000 MT of milled rice to Colombia in CY2003 owing an agreement between rice farmers and rice industries both in Colombia and Ecuador. Most of these exports were made by road. However, it seems that black market of rice from Ecuador into Colombia have occurred totaling exports 130,000 MT of milled rice. Post has been informed by rice millers industry that exports to Colombia under the agreement were scheduled for April-June 2003; but in reality the window for exports were reduced to three weeks in June. For CY2004, Colombia through a Decree 3724 has established a minimum tariff rate quota for rice imports of 75,118 MT of paddy rice, but the minimum TRQ can be increased depending on Colombia’s needs and subject to approval by the Ministry of Agriculture. Lately, Colombia has increased its TRQ to 180,000 MT, paddy basis. According to Ecuadorian rice industry, Ecuador will be ready to export milled rice to Colombia, but that depends on the availability of rice from the winter crop season (April-July), which Ecuador will likely be short. In the PS&D table, post has forecasted 40,000 MT of milled rice exported to Colombia in CY2004, including black market from Ecuador into Colombia.

There are no official statistics that track informal trade, post estimates that about 120,000 MT of rice-milled basis of Peruvian rice have been smuggled to Ecuador in 2003. Post forecast imports at 90,000 MT for CY2004, including black market from Peru. If the current winter harvest of rice comes late, Ecuador is to import milled rice to cover the shortage of rice for April 2004, estimated at 65,000 MT of rice paddy basis. In spite of that, the government, through the Minister of Agriculture, has stated that Ecuador will not import rice. This is based on the argument that there is enough rice for these months, which are located in the mill plants, or storage by dealers, but the price of rice in retail market has increased in January from $21-22 to $24-26 per hundredweight.

New winter crop season for rice is dependable from rains during December, January and February. As of February, the drought is affecting the current rice crop season. As a consequence, the peak of harvest season is expected to come late this year by June-July with first harvest not beginning until late March or April. Farmers are still waiting normal rainfalls to start sowing and planting rice. This circumstance will determine that Ecuador will likely be short in rice and will need of some imports of rice. Post forecasts total milled rice production for MY2004 (January 2004/December 2004) at 390,000 MT milled basis on 210,000 hectares, which is less than previous year’s revised figure of 420,000 MT of milled rice on 230,000 hectares. Post estimates at least 30,000 hectares of rice are definitely lost due to lack of rainfalls.